According to Barclays supplier tracking reports, Apple's hardware production in February was lower than the previous month, reversing part of the increase in January.
The Zhitong Finance App learned that according to Barclays supplier tracking reports, Apple (AAPL.US) hardware production in February was lower than the previous month, reversing part of the increase in January. However, the App Store grew 15% year over year in February, bringing the quarter's average growth rate so far to 10%. Currently, Barclays maintains Apple's “neutral” rating with a price target of $158.
Barclays Tim Long wrote in a report: “Overall, our survey still shows that iPhone sales continue to weaken, iPhone sales and share in China are declining, and the US macroeconomy is weak. Only strong emerging markets are strong, but this is not enough to offset.”
Long discovered that the European Union's Digital Markets Act and the ongoing lawsuit between the US Department of Justice and Google (GOOGL.US) all posed risks to the iPhone manufacturer. Furthermore, Huawei is grabbing more market share from Apple, which may lead to a decline in iPhone sales in China in 2024.
Counterpoint Research reports that Apple iPhone sales in China fell 24% year-on-year in the first six weeks of 2024 due to increased competition from Huawei.
More importantly, Barclays didn't see any “major design changes” to the iPhone 16, and it's not expected to see any surprises until at least 2025.
Barclays stated, “We don't think the iPhone 15 is a good cycle due to weak demand and extended replacement cycles. Macro factors and high base effects have all come together.”